Pengrowth Energy (NYSE: PGH) and Murphy Oil (NYSE:MUR) are both energy companies, but which is the superior business? We will compare the two companies based on the strength of their dividends, risk, analyst recommendations, profitability, earnings, institutional ownership and valuation.
Risk and Volatility
Pengrowth Energy has a beta of 2.37, indicating that its share price is 137% more volatile than the S&P 500. Comparatively, Murphy Oil has a beta of 2.24, indicating that its share price is 124% more volatile than the S&P 500.
Murphy Oil pays an annual dividend of $1.00 per share and has a dividend yield of 2.9%. Pengrowth Energy does not pay a dividend. Murphy Oil pays out -196.1% of its earnings in the form of a dividend.
Institutional & Insider Ownership
14.5% of Pengrowth Energy shares are owned by institutional investors. Comparatively, 96.8% of Murphy Oil shares are owned by institutional investors. 6.9% of Murphy Oil shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.
This table compares Pengrowth Energy and Murphy Oil’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
This is a summary of recent ratings and target prices for Pengrowth Energy and Murphy Oil, as reported by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Pengrowth Energy currently has a consensus price target of $2.00, indicating a potential upside of 156.97%. Murphy Oil has a consensus price target of $30.50, indicating a potential downside of 11.08%. Given Pengrowth Energy’s higher possible upside, research analysts clearly believe Pengrowth Energy is more favorable than Murphy Oil.
Valuation & Earnings
This table compares Pengrowth Energy and Murphy Oil’s gross revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Pengrowth Energy||$427.50 million||1.01||-$221.80 million||($0.83)||-0.94|
|Murphy Oil||$1.87 billion||3.16||-$275.97 million||($0.51)||-67.25|
Pengrowth Energy has higher earnings, but lower revenue than Murphy Oil. Murphy Oil is trading at a lower price-to-earnings ratio than Pengrowth Energy, indicating that it is currently the more affordable of the two stocks.
Murphy Oil beats Pengrowth Energy on 12 of the 16 factors compared between the two stocks.
Pengrowth Energy Company Profile
Pengrowth Energy Corporation is engaged in the development, production and acquisition of, and the exploration for, oil and natural gas reserves in the provinces of Alberta, British Columbia, Saskatchewan and Nova Scotia. The Lindbergh thermal property is located approximately 420 kilometers north east of Calgary, Alberta and 50 kilometers south of Bonnyville, Alberta. Its Greater Olds/Garrington area is located approximately 100 kilometers north of Calgary, Alberta. It has varied Working Interests within the Swan Hills area in all of the properties throughout this regional Beaverhill Lake resource base. These are both operated and non-operated, unit and non-unit properties in Judy Creek, Carson Creek, House Mountain, Deer Mountain, Swan Hills, South Swan Hills and Freeman. The properties are located approximately 200 kilometers northwest of Edmonton, Alberta. Its Groundbirch property is located approximately 40 kilometers south west of Fort St. John, British Columbia.
Murphy Oil Company Profile
Murphy Oil Corporation (Murphy) is an oil and gas exploration and production company. The Company’s exploration and production business explores for and produces crude oil, natural gas and natural gas liquids across the world. Its exploration and production activities are subdivided into four geographic segments: the United States, Canada, Malaysia and all other countries. It explores for and produces crude oil, natural gas and natural gas liquids around the world. This business maintains upstream operating offices in several locations around the world, including Houston, Texas, Calgary, Alberta, and Kuala Lumpur, Malaysia. As of December 31, 2016, Murphy’s principal exploration and production activities were conducted in the United States by Murphy Exploration & Production Company-USA (Murphy Expro USA), in Malaysia, Australia, Brunei, and Vietnam by Murphy Exploration & Production Company-International (Murphy Expro International) and its subsidiaries, and in Western Canada.
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